Monday November 02,2015
Mo Firouzabadian Senior Vice President
Increasing churn rates are a real concern for mobile operators and particularly in countries where prepaid, low ARPU customers and multi-SIM users are prevalent.
Many operators rely on below-the-line (BTL) mobile marketing campaigns to try and reach their prepaid customer base with messages and incentives aimed at increasing retention and stimulating revenues.
In reality, due to the frequent lack of resources, experience and IT tools in the area of analytics and marketing automation, such campaigns traditionally tend to be highly tactical, unpersonalised and often out of context, rather than tied into a coherent marketing strategy across the customer base. For instance, disparate campaign offers focusing on tariff competition and customer acquisition quick fixes, instead of accurately addressing the true needs of customers over their entire lifecycle, usually actually create the opposite effect to what was originally intended. Operators end up with rapid cannibalisation of revenues, eroding profits and churn.
In the face of ever growing competition, new entrants and decreasing margins, it is now critical for operators’ marketing teams to get the basics right, and only a deep understanding of the customer behaviour and a holistic campaign planning exercise can enable them to reach their goals.
Developed through our long-running experience in providing consultancy services to operators across emerging markets as well as in developed economies, our methodology for turning data into actionable insight involves four key steps.